WYOMISSING, Pa. (AP) – Penn National Gaming Inc. on Tuesday said profit in the first quarter fell due to a charge for retiring debt.

The casino owner that plans to install slot machines at a harness racetrack in Bangor, said net income fell to $15.8 million, or 19 cents per share, from $17.8 million, or 22 cents per share. Excluding a loss on early debt retirement, earnings from continuing operations rose to 31 cents per share in the from 26 cents. On that basis, earnings topped the estimate of analysts surveyed by Thomson Financial, who were looking for a profit of 28 cents per share.

Revenue rose to $289.3 million from $285.1 million.

The company said its results exceeded expectations due to improved cash flow from its Charles Town Races & Slot and Casino Rogue properties, as well as its management contract at Casino Rama in Ontario.

The company expects revenue for the second quarter to rise to $308.7 million from $290.1 million a year ago, and net income excluding debt retirement and other items to rise to 37 cents per share from 29 cents.

Penn National raised it outlook for full-year earnings from continuing operations excluding items to $1.30 per share from an earlier forecast of $1.20. The company posted earnings on such a basis of $1.08 per share in 2004.

The company is in the process of acquiring rival Argosy Gaming, an Alton, Ill.-based operator of six riverboat casinos, in a transaction valued at $2.2 billion. The acquisition, expected to close in the third quarter, is not reflected in the company’s earnings outlook.

Analysts are looking for earnings of 32 cents in the second quarter and $1.47 for the full year.

Penn National shares fell 21 cents to $32.15 in morning trading on the Nasdaq.